THE COMMISSIONER OF INCOME TAX vs. M/S BANGALORE ARRACK TRADERS

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ITA/952/2007HC KarnatakaKAHC01052015200714 August 2012Bench: B.MANOHAR,K.SREEDHAR RAO2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court of Karnataka allowed the appeal filed by the Revenue. The Court's decision was based on the Supreme Court's ruling in the case of Commissioner of Income Tax vs. Suresh N Gupta reported in (2008) 297 ITR 322 (SC). The High Court held that the substantial questions of law were to be answered in favour of the Revenue. Consequently, the order passed by the ITAT was set aside, and the order of the Assistant Commissioner was confirmed. The judgment does not specify the exact relief granted beyond allowing the appeal and confirming the lower authority's order. No issues were expressly left undecided.

What were the facts?

The Revenue, represented by the Commissioner of Income Tax and the Assistant Commissioner of Income Tax, filed an appeal before the High Court of Karnataka against an order dated August 10, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Bangalore. The ITAT's order had confirmed the order of the Appellate Commissioner, which in turn had upheld the order of the Assistant Commissioner of Income Tax. The appeal pertains to the Block Assessment Year from April 1, 1991, to April 27, 2001. The Revenue sought to set aside the ITAT's order and confirm the order passed by the Assistant Commissioner.

What were the issues?

1. Whether the substantial questions of law, as formulated in the appeal, should be answered in favour of the Revenue? (Question of law) Assessee's Arguments: The judgment does not record any arguments made by the assessee, M/s Bangalore Arrack Traders. Revenue's Arguments: The Revenue contended that the substantial questions of law should be answered in its favour. The judgment does not specify the exact questions of law or the provisions of the Income Tax Act, 1961, that were the subject of contention, other than implicitly referring to the ITAT's order being challenged. The Revenue relied on the Supreme Court decision in Commissioner of Income Tax vs. Suresh N Gupta reported in (2008) 297 ITR 322 (SC).

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 14TH DAY OF AUGUST 2012 PRESENT THE HON'BLE MR. JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA No.952/2007 BETWEEN : 1 THE COMMISSIONER OF INCOME TAX C R BLDNG, QUEENS ROAD BANGALORE.

2 THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(2) C R BUILDING, QUEEN'S ROAD BANGALORE. .. APPELLANTS (By Sri K V ARAVIND, ADV.) AND : M/S BANGALORE ARRACK TRADERS NO.200/1, R V ROAD BASAVANAGUDI, BANGALORE-4. ...RESPONDENT This ITA filed u/S.260-A of I.T.Act, 1961 arising out of Order dated 10-08-2007 passed in IT(SS)A 39/BANG/2006 for the Block Assessment Year 01-04-1991 to 27-04-2001, praying that this Hon'ble Court may be pleased to: i. formulate the substantial questions of law stated therein, ii. allow the appeal and set aside the Order passed by the ITAT, Bangalore in IT(SS)A 39/Bang/2006 dated 10-08-2007 confirming

2 the order of the Appellate Commissioner & confirm the order passed by the Asst.Commnr.,of Income Tax, Circle-5(1), Bangalore. This Appeal coming on for final hearing this day, K.SREEDHAR RAO, J, delivered the following: JUDGEMENT In view of the decision of the Supreme Court in the case of Commissioner of Income Tax -vs- Suresh N Gupta reported in (2008) 297 ITR 322 (SC), the questions of law are answered in favour of the revenue. Accordingly, the appeal is allowed. Sd/- JUDGE Sd/- JUDGE bkm.

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